Dáil Éireann Debate, Thursday - 20 March 2025
253. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 297 of 5 February 2025, if he will consider introducing an exemption to the 1% life insurance levy on people with life-long disabilities, particularly in cases where they rely heavily on compensation awards; and if he will make a statement on the matter. [13161/25]
Amharc ar fhreagraAs was noted in my reply to the Deputy's similar PQ that issued to him on the 5th of February this year,
I am advised by Revenue that section 124B of the Stamp Duties Consolidation Act 1999 provides for a Stamp Duty levy of 1% to be levied in respect of certain life insurance premiums paid to insurers. The levy is payable by the insurers to Revenue on a quarterly basis. It was introduced in 2009.
The levy is applied to the premiums paid under certain classes of life insurance policies to the extent that the risks to which the policies relate are located in the State. These classes are as follows:
• Class I – Life assurance and contracts to pay annuities on human life;
• Class II – Contracts of insurance to provide a sum on marriage or the birth of a child;
• Class III – Class I policies linked to investment funds
• Class IV – Permanent Health Insurance;
• Class V – Tontines, i.e., associations of subscribers which are established to benefit the beneficiaries of a subscriber on the death of that subscriber; and
• Class VI – Capital redemption operations, i.e., in return for a single (or periodic) payment agreed in advance, the policy holder will have a right to a specified sum for a specified period in the future.
Certain premiums are excluded from the levy, namely:
• premiums received in respect of pension business, as defined in section 706 of the Taxes Consolidation Act 1997, and
• premiums received in the course of or by means of reinsurance.
In relation to the 1% levy on certain life insurance premiums, as you may be aware my predecessor as Minister for Finance published the Report of the Funds Sector 2030 (Review) on 22 October 2024.
The Report of the Review is available at: www.gov.ie/en/publication/da341-funds-sector-2030-a-framework-for-open-resilient-and-developing-markets/
Recommendation 23 of the Report includes "Repeal of the 1% life assurance levy".
The Programme for Government "Securing Ireland's Future" published on 23 January 2025 includes a commitment to progress and publish an implementation plan for consideration on the Funds Review recommendations to unlock retail investment and opportunities to grow this sector in Ireland, and I, working with my officials, will consider next steps in this regard over the coming months.
